The Decrease in the Price of the Dollar: Causes, Implications, and Investment Opportunities in Colombia

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Decrease in Dollar Price Amidst Political Crisis

After days of consistent decline, the value of the dollar has experienced a decrease in recent days. This decline can be attributed to the ongoing political crisis faced by the national government, as well as positive economic data from the United States.

Dollar Ends with a Decrease to 4,179.20 Pesos

On Wednesday, June 14, the dollar closed at a decreased rate of 4,179.20 pesos, representing a 0.04% reduction or a decrease of two pesos compared to the previous day’s rate of 4,182 pesos.

Political Situation and Reforms Impacting Dollar Value

Experts believe that the current political situation, particularly the delays in the Petro Government’s reform discussions, has contributed significantly to the decline. The approval of these reforms remains uncertain and has caught the attention of investors.

External Factors Influencing Dollar Price

External factors such as the increase in the debt ceiling in the United States and Saudi Arabia’s decision to reduce oil production are also influencing the value of the dollar.

| Photo: Hammarby Studios, Getty Images

Expert Analysis by Diego Palencia

Dollar and market expert Diego Palencia explains that recent weeks have seen high volatility in the exchange rate due to various events. These events include the debt ceiling, new supply policies of the OPEC+, and overall economic weakness at both national and international levels.

Significant Decrease in Dollar Value

Comparing the current rate of 4,182.33 pesos with the record high of 5,061 pesos on November 8, 2022, the dollar has experienced a significant decrease of 878.67 pesos.

Colombian Peso Among the Strongest Currencies in Latin America

As a result, the Colombian peso has become one of the most appreciated currencies in Latin America throughout 2023. This appreciation brings about significant changes for the local economy.

Tips for Investing

Given the current downward trend, many Colombians are actively looking for investment opportunities. Experts suggest considering not only the low price of the dollar but also the rise in interest rates.

Economists recommend investing in assets such as gold or more developed currencies like the euro or the pound when the dollar weakens. Alternatively, buying dollars and waiting for the currency to trend upward again can also be a viable option.

The Fed says that it will raise the rate two more times and the dollar in the world falls. We are living the end of the decade of a strong dollar and that makes Latin America one of the best investment destinations for the next decade. Institutional stability and take advantage of oil.

– Felipe Campos (@FelipeCamposPC) June 15, 2023

Another recommended option is to have assets in authorized fintech investment companies that allow the purchase of shares in US markets. These investments offer returns in dollars and can lead to greater profits if the dollar strengthens in the future.

Investing in a pension fund, specifically with a voluntary and complementary contribution, is also advised. This option allows individuals to increase the contribution made as an employee, ultimately resulting in a higher pension amount. The financial plan and frequency of contributions can vary based on personal preferences.

Insurance companies also offer long-term investment plans that provide returns in dollars after a specified period, typically 10 or 15 years.

Given the current political uncertainty and the volatility in the dollar’s price, seeking advice from experts is regarded as the golden rule for making informed investment decisions.

| Photo: Claffra, Getty Images/iStockphoto

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